Sophie James-Bowen says she finds it odd that the government considers her and her husband David too rich to qualify for means tested benefits. The pensioners live in a modest council house in Bletchley near Milton Keynes on the state pension and small occupational pensions.

She says their income is not enough to run a car or jump on a plane for a foreign holiday. "Council tax and council house rent is taking nearly all our money," she says.

"My husband suffers from the cold in the winter, but we can't afford to turn the heating up. He just has to put on more clothes."

Winter fuel payments have not been increased in this year's budget, although the chancellor did announce a £300-£4,000 grant to install insulation or central heating.

David, 69, a former mail office manager for a large company, and Sophie, 61, a former local government worker, believe the government has let down people who paid their national insurance and saved spare cash in a pension.

"I don't say the state pension should necessarily go up because there are some very rich people receiving it, but there must be a better way of working out who gets benefits so people like us are not punished for saving," says Sophie.

The increase in income tax thresholds will go some way to helping the couple, but they will still struggle financially.

"Raising the personal allowance threshold is a small help, but there is still an imbalance between us and people who claim means tested benefits. It won't change our lives. I will still be shopping for clothes in second-hand shops," Sophie adds.